Prime minister Anthony Albanese confirmed the latest instalment today, following an initial US$500 million paid in February.

In 2023, the US, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China’s ambitions in the Indo-Pacific.

Australia committed to spend A$368 billion over three decades in its biggest-ever defence deal.

Canberra is due to pay the US US$2 billion by year-end to support the expansion of American submarine shipyards, Reuters reported in April.

“There’s a schedule of payments to be made. We have an agreement with the US as well as with the UK, it is about increasing their capacity, their industrial capacity,” Albanese told national broadcaster ABC.

“As part of that as well, we have Australians on the ground, learning those skills.”

Trump launched a formal review of Aukus in June to examine whether the pact met his “American First” criteria.

It will be led by Elbridge Colby, who in the past has expressed scepticism about Aukus.

Australia, which sees the submarines as critical to its own defence as tensions grow over China’s military build-up, has maintained it is confident the pact will proceed.

“We support Aukus,” Albanese said.

“We have an agreement to a treaty level, with our partners, signed, of course in San Diego with the US and UK.”

Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new Aukus-class submarine.